Finance
In Texas, 'seller concessions' in a real estate transaction (where the seller pays closing costs on the buyer's behalf) are limited by:
ATREC rules to a maximum of $5,000
BLender guidelines and loan program rules (e.g., conventional loans typically cap seller concessions at 3% to 6% depending on LTV)✓ Correct
CState law to 3% of the sales price
DThe MLS rules in each board
Explanation
Seller concessions (seller-paid closing costs) are limited by lender guidelines and loan program rules, not TREC rules. For conventional loans, the limit depends on LTV: 3% for LTV >90%, 6% for LTV 75%-90%, 9% for LTV ≤75%. FHA limits are 6%. VA limits are 4% of closing costs plus concessions. These limits prevent artificially inflated sales prices.
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